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Controlling environmental pollution: dynamic role of fiscal decentralization in CO2 emission in Asian economies

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Abstract

The “environment” has become one of the important and debatable topics of the world and policymakers identifying the new predictors of CO2 emissions. Therefore, some economies have been promoting fiscal decentralization to encourage environmental quality by granting more financial autonomy to provincial and sub-national governments. Therefore, this study evaluates the dynamic effect of fiscal decentralization on CO2 in selected nine Asian economies using a fresh dynamic panel ARDL model from 1984 to 2017. The empirical findings show that fiscal decentralization has asymmetric effects on CO2 emissions because a positive change in revenue and expenditure decentralization reduced CO2 emissions in Asia. Moreover, a negative change in expenditure decentralization has also enhanced CO2 emissions in the long run. Thus, clean environmental policies and recommendations can be revised and proposed based on nonlinear findings in the modern era.

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Data availability

The datasets/ materials used and/or analyzed for present manuscript are available from the corresponding author on reasonable request.

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Author information

Authors and Affiliations

  1. Thuongmai University, Hanoi, Vietnam

    Cong The Phan

  2. Teerthanker Mahaveer University, Moradabad, Uttar Pradesh, India

    Vipin Jain

  3. Universitas Muhammadiyah Yogyakarta, Yogyakarta, Indonesia

    Eko Priyo Purnomo

  4. Department of Business Administration, Shahjalal University of Science & Technology, Sylhet, Bangladesh

    Md. Monirul Islam

  5. Xi’an Jiaotong University, Xi’an, China

    Nafeesa Mughal

  6. Department of Energy, Universidad de la Costa, Barranquilla, Colombia

    John William Grimaldo Guerrero

  7. School of Economics, Quaid-i-Azam University, Islamabad, Pakistan

    Sana Ullah

Authors
  1. Cong The Phan
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  2. Vipin Jain
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  3. Eko Priyo Purnomo
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  4. Md. Monirul Islam
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  5. Nafeesa Mughal
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  6. John William Grimaldo Guerrero
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  7. Sana Ullah
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Contributions

Phan The Cong has provided the idea. Phan The Cong, Vipin Jain , Eko Priyo Purnomo, Muhammad Monirul Islam, and John William Grimaldo Guerrero have done the data acquisitions and analysis and written the whole draft. Nafeesa Mughal and Sana Ullah read and approved the final version.

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Correspondence to Cong The Phan.

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The Phan, C., Jain, V., Purnomo, E.P. et al. Controlling environmental pollution: dynamic role of fiscal decentralization in CO2 emission in Asian economies. Environ Sci Pollut Res 28, 65150–65159 (2021). https://doi.org/10.1007/s11356-021-15256-9

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  • DOI: https://doi.org/10.1007/s11356-021-15256-9

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